Former Executive Director Of Chelsea Housing Authority Charged With Falsely Reporting Salary

BOSTON - The former Executive Director of the Chelsea Housing Authority was charged today in federal court with falsely reporting his salary in annual budgets required by the U.S. Department of Housing and Urban Development (HUD) and the Massachusetts Department of Housing and Community Development.

Michael E. McLaughlin, 67, of Dracut, was charged in an Information with four counts of falsifying a record in a federal agency matter with intent to impede and obstruct that matter. The Information alleges that McLaughlin knowingly concealed, falsified, made false entries, and caused such concealment and false entries, in records and documents, namely, the annual fiscal year budgets of the Chelsea Housing Authority from 2008 to 2011, and submitted them electronically to the Massachusetts Department of Housing and Community Development.

The Information alleges that McLaughlin falsely stated that his budgeted annual salary was $151,945, when he knew that his actual salary for FY 2008 was at least $242,908 under his existing contract. It is further alleged that McLaughlin made the same kind of concealment of his rising salary in the ensuing three years. Specifically, in FY 2009 McLaughlin falsely reported that his budgeted annual salary was $156,503, when he knew that his actual salary was at least $267,199 under his existing contract and his total compensation was at least $292,902, as reflected in his 2008 W-2. Then in FY 2010, McLaughlin falsely reported that his budgeted annual salary was $160,415, when he knew that his actual salary was at least $275,215 under his existing contract and his total compensation was at least $324,896, as reflected in his 2009 W-2. In FY 2011 McLaughlin falsely reported that his budgeted annual salary was $160,415, when he knew that his actual salary was at least $283,471 under his existing contract and his total compensation was at least $324,896, as reflected in his 2009 W-2.

The maximum punishment under the statute is 20 years in prison, followed by three years of supervised release and a fine of $250,000 on each count.

United States Attorney Carmen M. Ortiz; Cary Rubenstein, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division made the announcement today. The Massachusetts Inspector General’s Office and Massachusetts State Police also assisted in the investigation.

The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of the Public Corruption and Special Prosecutions Unit and Special Assistant U.S. Attorney Edward Beagan from the Massachusetts Attorney General’s Office.

The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.